Excellent Summary of Greece’s Debt Burden in The New Yorker

I normally steer clear of politics on this blog, but I couldn’t not share this excellent article in The New Yorker about the Greece’s debt burden. It’s rather brief, but makes a few points that I think are very important:

  1. Tür der KämmereiGreece’s debt dynamics are unsustainable.
  2. Dragging out the negotiations hasn’t helped this, but to suggest that Syriza is to blame for Greece’s debt load being unsustainable is silly.
  3. The bailout was more about protecting German banks, but especially the French banks, from debt write-offs than helping the Greek people.
  4. European leaders were concerned that writing off some of Greece’s debts would set a precedent for other heavily indebted countries. This is true, but it’s probably too late now.
  5. Germany has benefited from debt relief after World War II, so it might be time to return the favor.

This is the kind of harsh realities I would like to hear from my government and other European leaders.

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